iRobot, the US company behind the Roomba robot vacuum cleaner, has filed for Chapter 11 bankruptcy protection in Delaware and agreed to be taken over by Picea Robotics, one of its Chinese suppliers. The move comes as the company struggles with declining profits since the pandemic, supply chain issues, and increased competition from cheaper rivals.
Under the restructuring agreement, iRobot will be acquired by a subsidiary of Picea, its main supplier. iRobot CEO Gary Cohen said the deal would strengthen the company's financial position and combine iRobot's innovation with Picea's manufacturing expertise to shape the future of smart home robotics.
The bankruptcy filing follows a failed $1.4bn acquisition attempt by Amazon in 2022, which was blocked by EU competition authorities. iRobot received $94m in compensation but used part of it to pay advisory fees and repay a loan from private equity group Carlyle. Picea's Hong Kong subsidiary acquired the remaining debt last month.
iRobot, founded in 1990 by MIT roboticists, pioneered consumer robotics with the Roomba. The company said the bankruptcy would allow it to continue operations, meet employee commitments, and pay vendors in full. It does not expect disruptions to its app, supply chains, or product support.
iRobot reported a net loss of $145.5m last year and has seen its market value plummet from over $3bn in 2021 to about $137m. Its shares fell more than 13% on Friday, losing about 45% of their value year-to-date.
